The supply continues to shrink, graphite electrode market is rising

On October 11, China's mainstream graphite electrode market average price was 23107 yuan/ton, 3.19% higher than the same period last week, 5.2% higher than the same period last month, 9.66% higher than the beginning of the year, 13.91% higher than the same period last year. The graphite electrode market has risen recently. With the end of the National Day holiday, under the production control, graphite electrode enterprises' output decreased compared with the previous period, the supply continued to shrink, and the inventory was low. In addition, as to the upstream of graphite electrode, raw materials current prices are still supported. In the case of early losses in the graphite electrode industry, the enterprise gradually increased the price by 500-1000 yuan/ton.

Price range: Recent graphite electrode diameter 300-600mm mainstream price in China:

RP graphite electrode: 20000-22000 yuan/ton; HP graphite electrode: 20000-23000 yuan/ton; UHP graphite electrode: 21500-26000 yuan/ton; UHP 700mm graphite electrode: 28000-30000 yuan/ton.

1. Cost end still supports graphite electrode price

The price of petroleum coke, the upstream raw material of graphite electrode, remained strong, and the refinery shipment was relatively stable. Fushun and Daqing high-quality low sulfur calcined petroleum coke price reached 11000-11600 yuan/ton, while Jinxi low sulfur calcined petroleum coke price remained at 10500 yuan/ton. Needle coke current price is weak and stable, and the enterprise's delivery is based on demand. In general, the raw material side still supports graphite electrode cost.

Graphite Electrode Upstream Raw Materials Prices List  (Unit: yuan/ton)

2. Market supply is slightly tight, which supports the increase of graphite electrode price

On the one hand, affected by the convening of the "20th National Congress", graphite electrode enterprises in Hebei and other regions have received production restriction requirements since October 2022. In addition, after the National Day holiday, the epidemic situation rebounded in many places in China; Sichuan, Shanxi and other areas have been affected by the epidemic situation with lockdown restrictions, resulting in limited production, moreover, graphite electrode production cycle is relatively long. Graphite electrode enterprises overall inventory remains at a low level in the short term, and enterprises' output is decreased compared with the early stage.

On the other hand, graphite electrode market cost is high and in a loss state in the early stage, the enterprises capital pressure is tight. In order to alleviate the current losses, graphite electrode enterprises actively expect the price to rise, but the operating rate of downstream steel plants is not optimistic, and the purchasing department of steel plant has lowered graphite electrode price. To sum up, graphite electrode market will maintain a tight supply of some specifications in the short term.

Future forecast: In the short term, graphite electrode market supply is tight, positive factors still exist, while graphite electrode price rise is relatively difficult. However, it is reported that the terminal steel market has not recovered significantly, steel production enthusiasm is limited, and graphite electrode purchasing willingness has not increased significantly, steel plants mainly purchased on demand. Therefore, in the short term, graphite electrode market price is expected to increase gradually. The overall graphite electrode market may recover stability in the later period. Welcome to contact us for daily report of graphite products.